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The Telco Price Premium

Vodafone has a proud history of playing the role of the leading challenger in global telecommunications. We thrive in markets with an effective competitive framework.

Vodafone has a proud history of playing the role of the leading challenger in global telecommunications. We thrive in markets with an effective competitive framework.

With the right regulations, telecommunications can supercharge productivity in Australia. Instead of a market that that encourages competition, however, in many areas of Australia the incumbent is effectively protected from competition.

The rollout of the NBN, the acceptance that NBN has a role to play in mobile as well as fixed, and the Mobile Black Spot Programme are all welcome initiatives by the Government. But Australian consumers and small businesses deserve better outcomes, especially in mobile telecommunications.

To drive an informed debate, Vodafone commissioned an independent assessment of the level of effective competition in both the fixed and mobile markets and the economic impact of poor levels of competition. The scale of the problem this has revealed is truly astonishing.

An extra $3.1 billion a year is coming out of the pockets of Australian families and businesses, particularly those in regional Australia due to a lack of choice.

This is equivalent to:

  • A 15 cents per litre increase in petrol prices.
  • Each Australian receiving an additional 3GB of mobile data each month.
  • More than twice the electricity price impact for households of the carbon tax.

It’s clear that millions of Australians, especially those in regional areas who have no effective choice, are getting a raw deal from the telecommunications market structure in this country.

Vodafone is advocating for a fairer playing field, one in which Australian telecommunications consumers, particularly those in regional areas, are the ultimate winners.

Our approach is based on the following principles:

  • Government funds must promote competition, not hurt it.
  • Monopoly infrastructure needs to be properly regulated to promote competition.
  • Greater sharing of regional telecommunications infrastructure reduces costs and promotes competition.

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